Japan Residential ORD 10P Share Discussion Threads

[topvest] 09/3/2011 13:46

Added some of these today. Looks well placed for recovery and 5% yield is attractive.

[monty9] 01/9/2010 14:19

Blimey..... managers and advisors putting their own money in!

and all having held nothing previously. Hmmmmmmmmm

ANNOUNCEMENT BELOW:


Director and Investment Adviser Dealings



Japan Residential Investment Company Limited (AIM: JRIC), an authorised closed-ended investment company incorporated in Guernsey and established to make and hold investments in residential property in Japan, has been notified of the following share dealings.



On 27 August 2010, James Fink, Senior Managing Director of K.K. Halifax Asset Management ("K.K. Halifax"), the Company's Investment Adviser, notified the Company that he had acquired 60,000 ordinary shares of 10p each in the Company ("Ordinary Shares"), representing 0.03 per cent. of the Company's issued share capital. Mr Fink acquired 50,000 Ordinary Shares at 47p per Ordinary Share on 24 August 2010 and 10,000 Ordinary Shares at 46p per Ordinary Share on 25 August 2010. Prior to this Mr Fink held no shares in the Company.



On 31 August 2010, Alec Menikoff, Managing Director of K.K. Halifax, notified the Company that he had acquired 10,000 Ordinary Shares at 47p per Ordinary Share on 27 August 2010, representing 0.01 per cent. of the Company's issued share capital. Prior to this Mr Menikoff held no shares in the Company.



On 30 August 2010, Paul Hammerstad, a non-executive director of the Company, notified the Company that he had acquired 30,000 Ordinary Shares, representing 0.02 per cent. of the Company's issued share capital; 26,000 Ordinary Shares at 48.5p per Ordinary Share on 20 August 2010 and 4,000 Ordinary Shares at 46p per Ordinary Share on 25 August 2010. Prior to this Mr Hammerstad held no shares in the Company.

[mangal] 20/7/2010 19:52

Someone likes these: a nice chunky buy this morning.

[monty9] 09/7/2010 13:52

That is conviction indeed, and parhaps a determination to tip the operation in favour of shareholders to boot.

[mangal] 09/7/2010 10:58

I have bought a few here on back of seeing that Ruffer have bought in. They own almost 30%- now, that's conviction !

[sahara] 27/4/2010 11:54

Energyi - Whats your stance on Japanese stocks?

S.

[zastas] 24/4/2010 17:33

JRIC continues to look after its own. Still about 50% of rental income on operating and administration ( 8 million GBP out of 17 gross rental).

Interest only just more than either of these two costs, at 4.5 M. If only you lived in Japan and could manage these flats yourself.........

But LTV and re-financing pressure clearly exists. In Dec09 LTV 80%, end-of-year blended 75%. But recent re-financing done at LTVs of about 50%. JRIC had to put up cash. Clearly the banks do not want to re-finance at reasonable rates at LTVs any higher. Much more to come as debt-maturities very short..

With these high non-interest costs, JRIC could be quickly toast if there is any significant rise in Japanese rates. Yes, I know, perhaps we'll be waiting a lot longer before any JPG bond rout, but it would be very,very dramatic. And then the Yen could crash back.

In the mean time, JRIC continues to dine out on our money. No divi for us.

[monty9] 08/3/2010 12:00

I own some of these from £1, and am also happy to see the price jump ;-)

[sahara] 07/3/2010 19:21

GB - Thanks appreciated!

S.

[gb904150] 07/3/2010 11:33

Have a look at FJV, JPS, MJT - all smaller cap shares.

My preference is FJV due to the lower charges. Only 1% IIRC.

All trade at an ok discount to NAV 10-20%. Nice way to get shut of GBP.

[sahara] 07/3/2010 11:15

Looking good as part of a balanced book of Japanese investments. Another one I am looking to gain exposure to is small cap Co's. Any ideas?

S.

[monty9] 02/3/2010 18:19

Up 6% on a £10K trade. JPY strengthening dramatically and signs of life in the Japanese economy. Company unlikely to go into liquidation due to lack of creditg (and a NAV of more than double the share price).

Starting to look like a good punt.

[stuart14] 25/2/2010 11:00

Did nothing to the share price but:

Japan Residential Investment Company Limited ("the Company")
Refinancing of Loan
Japan Residential Investment Company Limited (AIM: JRIC), the closed-ended
Guernsey registered company established to make and hold investments in
residential property in Japan, announces the refinancing of JPY3.16 billion (GBP
22.0 million) of its existing debt with Mizuho Trust Bank ("MTB") scheduled to
mature in February 2010. The Company announced on 21 May 2009 that the
Investment Advisor was engaged in discussions with the lender regarding the
terms and conditions of this loan. The refinancing represents a repayment of
JPY1.31 billion (GBP 9.1 million) of the principal amount of the original loan
resulting in a reduction in the loan-to-value ratio of the related properties
from 75% to 44% based on property valuations as at 30 November 2009. The
refinanced loan with MTB is for an amount of JPY1.85 billion (GBP 12.9 million)
at a fixed interest rate of 2.20% maturing on 31 January 2014.

[gb904150] 30/12/2009 16:21

Board remuneration would have been passed at the last AGM held in May.

Surely all that is required is that shareholders take an active interest in their holding and vote against such enormous administration fees.

That additional £1.5m admin costs should be going to pay down debts - not into directors' pockets.

[ydderf] 28/12/2009 13:40

zastas - good post!

[zastas] 26/12/2009 14:43

IMO it remains expensive. No income either.

As with so many funds, the main or only beneficiaries are the managers/boards or those who cash the 'administrative expenses'. I have just re-read the IR. JRIC say that they have reduced considerably some costs. Well, as a percentage of net income that is true. But shockingly they have now trousered 2.5 million instead of 1 million in administration costs. That's an increase of 150% and 250% of the comparable half-year's costs. Spinning numbers of the worst kind that RobberBrown has been practising for years.

This is more than 25% of gross rental income! Way,way too high IMO. Your BTL punter in Blighty pays perhaps 10-15% for full management. And that is without a super-discount surely available for a portfolio of £231 million, as are supposedly worth JRIC's current assets. All right, your BTLer may have to pay a little maintenance costs too, but JRIC's properties are all very new-built.

But hey, there's is also operating expenses. In fact more than 20% of gross rental. Blimey, JRIC are geniuses, managing to spend almost 50% of gross rental income on operating and administration. RobberBrown should enoble them quickly , put them on expenses and then in his government, next to Lord Peter-the-Crab, he who knows all about bamboozling mortgage-lenders( the Nationwide) with a icy-white lie.

No, as punishment for misjudging the market, managers, the board and administrators should work for the proverbial peanuts until the original investment flotation value has been restored. At PEJR it's even worse. But most of the 'investors' are institutions and they donot care. They will continue to get, and then destroy , our money because the tax-system encourages or even forces us to park money with them. This built-in institutional tax-advantage needs to go pronto. Abolishing CGT could be a start.

The only possible JRIC attraction is the stated NAV and the discount. But with its gearing, banks' reluctance to renew credit and another modest drop of prices of say 10%, much of that NAV-discount will be gone too. As a sign of things to come, JRIC sold recently a property for 450 million yen. But it was valued at 520 on August 31, a 13% reduction. And it was an unmortgaged one and an apparently unforced sale. What if they must sell?

Investing in JRIC means you are bullish about the Japanese currency, stockmarket,banks and homes. For the first three there are much better and cheaper-in-cost alternatives. If you want Japanese homes, it's much better to get on a plane and buy one in your name, with or without a mortgage. Haggle 10-20% off asking price and that's the equivalent of the current JRIC discount to NAV. Then I am sure you can do better than a 25% plus administration and 20 % plus operating cost.

Boxing Day rant over.

[skyship] 01/12/2009 08:59

Well, cheapest online offer seems to be 33.74p - darned if I'm going to pay that for stock they've taken on the books for 31p!

[monty9] 30/11/2009 18:33

Yep - too cheap by miles, but still the price feels weak. It might recover as the small improvement in the Japanese economy continues anthough I'm not inclined to increase my investment currently. However, at a certain point, one might expect the institutions to start action to return the assets to shareholders if the price remains as badly bombed out as it is currently.

[skyship] 30/11/2009 09:32

Monty, Energyii et al: These may have been a really poor investemt thus far, but surely @ 34p they are just too cheap. Sure, a refinancing is due in Feb'10; but does that really pose a concern - global banks don't foreclose on performing loans, so where's the problem?

[energyi] 14/10/2009 04:26

May.2009 = 98.2P
Highlights for the six months ended 31 May 2009
* Underlying profit* before tax increased to GBP2.5 million over the same period
one year prior
* Loss for the period increased to GBP10.5 million from GBP4.5 million over the
same period one year prior
* Property operating expenses as a percent of gross rental income fell to 20.8%
from 34.7% for the same period one year prior
* Fund property values declined 4.6% during the six month period (decline of
10.8% during the 12 months ended 31 May 2009)
* Gearing, calculated as net debt (borrowings less cash balances and lender
restricted reserves) divided by total assets was 51.4%
* NAV fell 14.7% during the period to 98.2p per share (100.9p based on exchange
rate at 13 July 2009)
* There are no significant refinancing events in 2009. Discussions with lenders
are ongoing regarding the refinancing of JPY9.3 billion (GBP59.3 million) of
debt maturing in 2010.

[energyi] 14/10/2009 03:54

Feb.2009 = 114.9P
The Directors of the Company wish to announce
that the Net Asset Value for the Company as of 28 February 2009 was 114.9 pence
per share (JPY160 per share) compared to 115.2 pence per share (JPY168 per
share) as at 30 November 2008. The decline in Net Asset Value is attributable to
a 2.3% decline in asset values during the 3 months ended 28 February 2009 which
was partially offset by exchange rate movements, income generated by the fund
and distributions paid.

MORE
held 54 properties (the "Portfolio") with an
appraised value of approximately JPY37.33 billion (GBP267.3 million) as at 28
February 2009 representing a decline of 6.9% from initial purchase price
excluding acquisition costs. Values on properties held for the 12-month period
ending 28 February 2009 fell 9.2% during the period. The unleveraged, net yield
of the portfolio (projected 2009 property-level net operating income over value)
was 5.6%.


Cash at bank held by the Fund totalled JPY2.53 billion (GBP18.1 million) as at
28 February 2009. In addition, cash balances in the form of lender restricted
reserves and security deposits from tenants totalled JPY1.16 billion (GBP8.3
million). In total the Fund had outstanding debt of JPY25.20 billion (GBP180.5
million) as at 28 February 2009. Fund debt is non-recourse and was secured
against 48 properties valued at JPY34.03 billion (GBP243.7 million) with an LTV
ratio of 74.1%. Fund gearing, calculated as net debt (borrowings and deposits
from tenants less cash balances and lender restricted reserves) divided by total
assets, was 52.4%.

The debt to equity ratio, calculated as net debt divided by total equity, was
1.30x. The blended interest rate of debt was 2.19%. The average remaining tenor
of outstanding debt was 2.4 years. The Fund has its first significant
refinancing event in February 2010 with the maturity of two loans totalling
JPY3.16 billion (GBP22.6 million). The Investment Advisor is engaged in
discussions with the lender regarding terms and conditions of this refinancing.

The occupancy rate for the portfolio was 91.8% as at 30 April 2009 compared with
94.2% as at 30 November 2008. Leases with corporate counterparties represent
29.7% of Fund leases currently in place. Due to the quality of tenants and the
fact that the vast majority of leases have third party guarantors, instances of
non-collection of rent have been limited to less than 0.1% of annual rental
income.

==

If Y160 /share today, then...

[energyi] 14/10/2009 03:49

Monty9 - 20 Jan'09 - 18:40 - 68 of 75
When JPY was about 155 to GBP1, the NAV was £1.21
If the value of property had remained unchanged and the company traded at break even, at today's JPY126, the GBP value per share would be £1.49 against the 38p quote. Speculation I know but that is about a 75% discount...

==

Reported NAV is now??

Yield is high !
JRIC.L : 36.75 +0.50
Volume: 20,000 / Percent Change: +1.38%
Yield: 12.24%

[asmagliocco] 31/8/2009 14:39

Hi YdderF, we can but hope that a wave of optimism will herald in an overdue "feel-good" effect in Japan and that folks will dip into their savings to buy houses.